Agribank reduce loss to US$5,8 million

In February this year the bank was removed from the United States of America sanctions list.

THE Agricultural Bank of Zimbabwe (Agribank) recorded a loss after tax of US$5,8 million for the year to December 2015 from another loss of US$9 million during the same period in 2014.

In statement accompanying the bank’s financial result, Agribank said the loss was due to staff rationalisation costs amounting to US$4,3 million, which was “ a deliberate strategy to sacrifice a profit now for long term sustainable profit in future”.

Net interest income for the year increased by 11,3 percent from US$7,4 million in 2014 to US$8,2 million last year.

“Non interest income grew by 10,6 percent from US$12,8 million in 2014 to US$14,1 million in 2015. Following capitalisation in May 2015 and subsequent access to the Afrtrades Facility, trading in the second half of the year improved measurably with the bank recording monthly profits from August 2015 due to increased volumes,” Agribank chairman Sijabuliso Biyam said in a statement

This, he said resulted in enhanced liquidity for the bank and a significant increase in the loan book, which has surged by 47 percent to US$113 million last year.

Operating costs grew by 14 percent from US$22 844 million in 2014 to US$26 million last year with the increase mainly driven by staff rationalisation costs

In February this year the bank was removed from the United States of America sanctions list.

Going forward the banks says it was looking forward to to pursuing lines of credit and engagement with development partners for agricultural funding, particularly to small scale farmers.

“Agribank envisages increased government support and private sector partnership in agriculture investment and financing. It is the expectation that international development partners will focus on agriculture and infrastructure development, as key pillars for sustaining economy wide recovery and growth,” said Biyam.

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